IPO PresentationIPO Presentation

July 30, 2004July 30, 2004

Meghmani Organics Limited

Page 2

Section 1 Overview 3

Section 2 Robust business model 11

Section 3 Low cost, highly skilled manufacturing base 17

Section 4 Integrated operations 20

Section 5 Clear growth strategies 26

Contents

Section 1 : Overview

Page 4

Meghmani Organics Limited

Established in 1986

Four manufacturing plants with total floor area of 180,000 sqm

Core competence is in organic chemistry

Well positioned to capitalise on the emerging global outsourcing trend

Chemistry of Success

Page 5

Business Profile

Pigments Pesticides

Products

• Blue and Green

Applications

• Printing inks, plastics,paints, textiles, leather, paper and rubber

• Wider than dyes

Products

• Pyrethroid and Organophosphorous

Applications

• Crop protection• Non-crop applications

MeghafastMegastar

Megacyper

30th September,04 revenue contribution

42.0% 54.6%

Page 6

Pigment ManufacturingPHTHALOCYANINE GREEN AND BLUE PIGMENTS

Upstream product

Sold to other pigment manufacturers

End products

Sold to Industrial application users like ink, paint, plastic etc.

manufacturers

PIGMENT GREEN PIGMENT BLUE

CPC BLUE

CPC BLUE

Page 7

One of the leading players in Pigments

Our Pigment Blue plants have designed capacity is 10,800 tonnesper annum at Panoli plant

More than 80% of production is exported worldwide

More than 100 global customers

Page 8

Pesticides ManufacturingEncompasses the entire value chain

Pesticide Intermediates

Technical Grade Pesticides

Pesticide Formulations

h Vertically integrated manufacturing processes- more than 50% of production exported worldwide

h We are at the beginning of the outsourcing trend for pesticides by MNCs

h Vertically integrated manufacturing processes- more than 50% of production exported worldwide

h We are at the beginning of the outsourcing trend for pesticides by MNCs

Sold to technical grade pesticides manufacturers

Sold to pesticides formulators

Small Packing

Bulk Packing

Sold to institutional customers

Sold to retailers, dealers or directly to farmers

Page 9

High Barriers for New Entrants

Strict government regulation

Prohibitive registration cost for Pesticides

High costs for customers to switch to alternative suppliers

Pigments have specific characteristics tailored to individual needs

Proprietary brands which are well recognised in our markets –India, Europe, the USA and Latin America

Section 2: Robust business model

Page 11

Healthy Revenue Profile

Revenue (6 months ended on Sept 30, 2004)

• Consistent revenue growth

• Balanced product mix

42%

3%

55%

Pigments Pesticides Others

31.7 m38.8 m

3.3 m

51.7

64.8

74.282.2

58.7

5.0

15.0

25.0

35.0

45.0

55.0

65.0

75.0

85.0

95.0

FY2001 FY2002 FY2003 FY2004 6 mths ended Sept30, 2004

S$M

Financial year ending 31 March

Page 12

Attractive profit margins

Financial year ended March 31

Consistently high profit margins

Gross Profit Margin by Business Segments (FY03)

26%29% 30% 29%

24%

10%13%11%

14%10%

0%5%

10%15%20%25%30%35%

FY2001 FY2002 FY2003 FY2004 6 monthsended Sept 30,

2004GP Margin PAT Margin

Attractive profit margins

Financial year ended March 31

Consistently high profit margins

Gross Profit Margin by Business Segments (FY03)

26.40%

22.10%

3.80%

0%

10%

20%

30%

Pigments Pesticides Others

Page 13

Strong domestic and export growth

Financial year ended 31 March

2937.9

68.4 69.1 72.6 7162.1

27.430.931.6

0

10

20

30

40

50

60

70

FY2001 FY2002 FY2003 FY2004 6 monthsended onSept 30

2004Local Export

Local and Export Sales growing in tandem

• More than 80% of pigments products are exported in FY2004

• More than 50% of pesticides products are exported in FY2004(S

ales

in S

$ m

illion

s)

Section 3: Low cost, highly skilled manufacturing base

Page 15

Strategic LocationMeghmani is located in State of Gujarat – natural advantage for pigment and pesticide manufacturers

Pigments

Pesticides

Vatva Plant

Panoli Plant

Chharodi Plant

Ankleshwar Plant

located in one of India’s chemical belts

large pool of scientists and engineers at low cost

close proximity to sources of raw materials at low cost

proximity to key transportation infrastructure - key ports, railway and road networks

Page 16

Well Positioned to Capitalise on Outsourcing Trend and Opportunities

A shift in global trend :

- Chemical production moving from traditional bases in US and Europe to India and China

Our advantage- Already servicing more than 100 global customers

- Large pool of in-house scientific and engineering talent

- ISO 9001 – 2000 certified production facilities

- Environmentally friendly production plants

Section 4: Integrated Operations

Page 18

Integrated Manufacturing Capabilities

We have fully integrated production processes

Upstream production of some of the key raw materials and intermediates

Multifunctional production facilities

-ability to change product mix to suit market conditions

Allows effective management of costs, quality and regular supply of our products

Page 19

Our Utilisation Rates

Vatva Plant

Panoli Plant

Chharodi Plant

Ankleshwar*Plant

FY2001

FY2002

FY2003

FY2004

Designed Capacity

Designed Capacity

Designed Capacity

Designed Capacity

Utilisation

%

Utilisation

%

Utilisation

%

Utilisation

%

975

975

975

1,200

112

100

111

78

4,400

4,700

9,400

10,800

65.6

94.9

68.0

81.1

2,410

2,410

3,450

4,650

94.5

110.2

86.3

74.3

-

-

-

800

-

-

-

27.6

*Newly acquired in August 2003Note: Designed Capacities in MT

Pigments Pesticides

Page 20

Strong R&D capabilities

Team of skilled technical engineers and science graduates

- Chemical engineering degree and PhD holders

- Develop production processes in-house

Well-equipped laboratories

Developed a wide range of products for use in a multitude of industries

Provides the leverage to respond quickly and capitalise on shifts in market trends

Page 21

Experienced and qualified management and technical team

Founders Have over 50 years of relevant industry experience

Strong senior management team

Anand Patel

Exec Dir

Natu Patel

MD

Jayanti Patel

Chairman

Ashish Soparkar

MD

Ramesh Patel

Exec Dir

Page 22

Capabilities are well recognisedReceived multiple awards for excellence in export sales

Award for export performance from GDMA, Ahmedabad (1997-1998, 2000-2001, 2003-2004)

Award for excellent performance from CHEMEXCIL, Bombay(2000-2001)

Six Sigma award from General Electric(2000-2001)

National export award from the President, Government of India

Section 5: Clear growth strategies

Page 24

Increase Product Range

Fundamental shift towards high performance

pigments

Fundamental shift towards high performance

pigments

• Introduce new eco-friendly solvent – Hysol-P based CPC blue

• Manufacture new generation, metal free and eco-friendly pigments – PB 16 and PB 79

• Weather resistant automobile paints – PB 60

Global patent protection for generic

pesticides expiring

Global patent protection for generic

pesticides expiring

• In the process of developing off-patent pesticides :

-Indoxacarb & Acetamiprid (increases cotton productivity)-Bifenthrin(new eco-friendly product for public health)-Triazophos(new product for pulses, paddy, vegetables)

Page 25

Expand Global Customer Base

Global expansion of key user markets such as printing inks

and paints

Increasing contract manufacturing

Obtain required registration for our pesticide products in

overseas markets

Page 26

Build on Global Distribution Network

Set up subsidiary in Belgium

Additional warehouses in North and South America

Extensive global distribution channels presently :

> 1000 stockists, agents, distributors and dealers covering India market

20 overseas distributors worldwide

Warehouses in Belgium and Uruguay

Future Strategy

Continue to expand distribution channels in India and overseas

Thank YouThank You